Eli arrived at the Great Library just as dawn painted Learnville's rooftops in gold. The market square was quieter today, but whispers of a new "silver mine boom" still floated through the air. Eli ignored them, his mind focused on Benjamin's promise:
To build wealth like a fortress—strong, steady, and safe.
Inside, Benjamin sat beside a stack of scrolls labeled "Portfolio Plans."
"Today, Eli," he said, "you'll learn how to protect your coins and make them grow. There are two paths:The Defensive Way, for those who seek safety and ease...And the Enterprising Way, for those who dare to dig deeper for greater rewards."
Eli leaned forward, curious.
"Which path is for me?"
"That depends," Benjamin replied. "The Defensive Investor builds a simple, sturdy fortress. They split their coins evenly—half in high-grade bonds, like the king's own treasury notes, and half in a basket of strong, trusted businesses. These must be large, well-known, and built on solid ground—like the blacksmiths and millers of Learnville who've paid their workers for decades."
"You don't need a hundred businesses," he added. "Just ten to thirty—carefully chosen, like the thirty great houses of the Dow Jones Council."
Eli imagined a fortress with two towers: one of bonds, safe as stone, and one of stocks, diverse and dependable.
"What about the bonds?" he asked. "Why are they special?"
Benjamin smiled.
"U.S. Treasury bonds are like enchanted shields.Backed by the kingdom's promise, they offer safety and a steady return. But beware foreign bonds—like those from the far-off Republic of Cuba. They may promise riches, but if they falter, your claims could vanish like smoke."
"Choose bonds for safety, yield, and stability. And keep your fortress balanced—never tipping too far toward stocks or bonds. Maintain between 25% and 75% in either, depending on your strength and needs."
Eli scribbled notes, picturing his coins split wisely.
"And the Enterprising Way?" he asked.
Benjamin's eyes lit up.
"That path is for the brave. The Enterprising Investor hunts for hidden treasures—businesses others overlook, priced low but rich with potential. They study each one carefully, asking: Is this worth more than its price? They keep a watchlist— like a hunter's map — to track bargains and avoid chasing fool's gold."
"But they must have a checklist, Eli—a strict code to follow. Without it, they risk being swept up in excitement and buying illusions instead of value."
Eli imagined himself as a treasure hunter, navigating Learnville's markets with a list of rules and an unshakable discipline.
"So I either play it safe… or hunt smartly?" he asked.
"Exactly," Benjamin said. "Both paths need a strong foundation—diversification, to spread your risk, and discipline, to stick to your plan."
"Tomorrow, we'll talk about riding through storms… and the secret of the Margin of Safety."
As Eli stepped outside, he felt the framework of a fortress rising in his mind—safe bonds, sturdy stocks, or bold bargains. The market's whispers still stirred the air, but now, they couldn't shake his foundation.